Why is NIIT Learning falling/rising?
As of 20-Jun, NIIT Learning Systems Ltd's stock price is Rs 335.70, down 3.73% and has declined 6.75% over the last four days. Despite a high return on equity, the company faces poor long-term growth and has significantly underperformed against the market benchmark.
As of 20-Jun, NIIT Learning Systems Ltd is experiencing a decline in its stock price, currently at Rs 335.70, which reflects a decrease of Rs 13.0 or 3.73%. The stock has been underperforming, having fallen consecutively for the last four days, resulting in a total drop of 6.75% during this period. It opened with a loss of 2.21% today and reached an intraday low of Rs 332.95. Over the past week, the stock has decreased by 6.31%, and its year-to-date performance shows a significant decline of 25.15%. Despite a high return on equity (ROE) of 20.84% and a low debt-to-equity ratio, the company has faced poor long-term growth, with net sales and operating profit growing at only 10.20% and 9.13% annually over the last five years, respectively. Additionally, the stock is trading at a discount compared to its peers, but this has not translated into positive price movement.In the broader market context, the Sensex has shown a positive return of 1.59% over the past week, contrasting sharply with NIIT Learning's decline. The stock's performance has consistently lagged behind the benchmark, with a one-year return of -25.61% compared to the Sensex's gain of 6.36%. This consistent underperformance against the benchmark, combined with a significant drop in profit before tax and the lowest return on capital employed in recent periods, suggests that investor sentiment remains negative. Although there has been a rise in investor participation, as evidenced by increased delivery volume, the overall outlook for NIIT Learning remains bleak, leading to its current price decline.
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